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Iqiyi Inc (IQ)
NASDAQ:IQ
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Iqiyi
(NASDAQ:IQ)
Rating:68Neutral
Price Target:
$2.50
▲(5.93% Upside)
Positive Factors
Content Strategy
Encouragingly, 3Q shows signs of recovery with a stronger content lineup across dramas and variety shows driving improved audience engagement.
Cost Management
The company appears to be actively managing costs and expenses.
Policy Impact
The new policy issued by the NRTA to support the TV content supply has driven online video sector valuation rerating, and may also benefit iQiyi’s business outlook.
Negative Factors
Advertising Weakness
Shorter lead times for planning variety shows limited advertisers' ability to launch and engage in campaigns, contributing to weaker advertising growth.
Competitive Pressure
Near-term growth challenges remain as competition from fast-growing mini-drama platforms intensifies and management’s cautious guidance signals continued pressure.
Revenue Decline
Total revenue was down by 11% YoY/8% QoQ to RMB6.62bn, in line with Bloomberg consensus/our estimate.
Iqiyi (IQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.26B
Dividend YieldN/A
Average Volume (3M)24.42M
Price to Earnings (P/E)183.6
Beta (1Y)1.07
Revenue Growth-10.86%
EPS Growth-94.68%
CountryUS
Employees4,673
SectorCommunication Services
Sector Strength90
IndustryEntertainment
Share Statistics
EPS (TTM)<0.01
Shares Outstanding528,516,360
10 Day Avg. Volume37,100,456
30 Day Avg. Volume24,416,796
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.46
Enterprise Value/Ebitda1.91
Forecast
1Y Price Target
$2.64Price Target Upside11.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Iqiyi Business Overview & Revenue Model
Company DescriptionIqiyi (IQ) is a leading online video streaming platform based in China, often referred to as the 'Netflix of China.' The company offers a diverse range of content, including movies, television series, documentaries, and original programming, catering to millions of subscribers. Iqiyi operates primarily in the digital entertainment sector, focusing on providing high-quality video content through subscription services and ad-supported models. Its platform also includes features such as user-generated content and interactive entertainment, enhancing viewer engagement.
How the Company Makes MoneyIqiyi generates revenue through multiple streams, with the primary sources being subscription fees from its premium membership service and advertising revenues. The subscription model allows users to pay for access to exclusive content and an ad-free viewing experience. In addition to subscriptions, Iqiyi earns income from advertisers who pay to place ads on its platform, leveraging its large user base for targeted marketing. The company also engages in partnerships with content creators and production studios, which can lead to co-productions and licensing deals, further boosting its revenue. Moreover, Iqiyi invests in original content creation, which not only attracts subscribers but also enhances its brand value and competitive edge in the crowded streaming market.
Iqiyi Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in content and overseas markets, and innovative business approaches, but also noted declines in membership services, advertising, and content distribution revenue.Q2-2025 Updates
Positive Updates
Strong Content Performance
Three original drama blockbusters achieved IG popularity index scores of over 10,000. The company maintained leadership in total drama viewership market share for four consecutive quarters.
Variety Show Success
iQIYI accounted for four of the top five spots in the summer season's total viewership list. The King of Stand Up Comedy Season two commanded the industry's highest viewership market share.
Overseas Business Growth
Both subscriber base and revenue from membership services reached record highs in Q2. Membership revenue grew by around 35% annually in overseas markets.
Innovative Business Models
The company implemented a revenue-sharing model for newly released theatrical movies, generating significant revenue.
AI-Driven Enhancements
Introduction of AI-powered iJump Talkout feature to enhance viewer engagement. AI applications increased efficiency and reduced production costs.
Negative Updates
Decline in Membership Services Revenue
Membership services revenue was RMB4.1 billion, down 9% annually due to a lighter content slate compared to the previous year.
Decrease in Advertising Revenue
Online advertising revenue decreased by 13% annually, impacted by advertisers adjusting strategies due to macroeconomic pressures.
Decline in Content Distribution Revenue
Content distribution revenue was RMB436.6 million, down 37% annually, primarily due to a decrease in other transactions.
Company Guidance
During the second quarter of 2025, ICE delivered impressive content performance, solidifying its leadership in the drama viewership market. The company released blockbuster dramas like "Field" and "Coroner's Theory," each scoring over 10,000 on the IG popularity index, and maintained dominance in the female and realistic genres. Variety shows also excelled, with "The King of Stand Up Comedy Season Two" achieving the highest market share in its category. ICE's overseas business showed strong growth, with membership revenue growing by around 35% annually, especially in markets like Brazil and Indonesia. Financially, total revenues were RMB6.6 billion, with membership services contributing RMB4.1 billion, despite a 9% annual decline due to a lighter content slate. The company maintained disciplined cost management, achieving an 8% reduction in accounting costs, and ended the quarter with cash and equivalents totaling RMB5.1 billion. Additionally, ICE made strategic strides in IP-based consumer products and offline experiences, with self-operated live table trading cards generating over RMB100 million in GMV.Iqiyi Financial Statement Overview
Summary
Iqiyi exhibits a mixed financial performance. The income statement reflects efforts to stabilize profits amidst revenue volatility, while the balance sheet indicates a relatively balanced capital structure but with notable liabilities. Strong cash flow management provides a buffer against financial uncertainties, but sustained growth remains a challenge.Income Statement
Iqiyi's income statement shows fluctuating revenue with a slight decline in the TTM, indicating challenges in sustaining growth. Profit margins are low, with a gross profit margin of 23.7% and net profit margin of 1.0% for TTM, reflecting pressure on profitability. However, the company has managed to recover from previous losses, showcasing resilience.65
Positive
Balance Sheet
The balance sheet reveals moderate leverage with a debt-to-equity ratio of 1.10, indicating manageable but significant debt levels. The equity ratio stands at 28.9%, suggesting a stable capital structure. The company has improved its equity position over time, yet high liabilities remain a concern.60
Neutral
Cash Flow
Iqiyi demonstrates strong cash flow management with a positive free cash flow of 1.4 billion in TTM and a free cash flow to net income ratio of 4.86. However, the decline in free cash flow growth rate indicates potential future challenges in cash generation.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.48B | 29.23B | 31.87B | 29.00B | 30.55B | 29.71B |
| Gross Profit | 6.76B | 7.27B | 8.77B | 6.68B | 3.04B | 1.82B |
| EBITDA | 1.64B | 1.82B | 17.25B | 14.34B | 12.10B | 11.28B |
| Net Income | 290.89M | 764.06M | 1.93B | -117.78M | -6.11B | -7.01B |
Balance Sheet | ||||||
| Total Assets | 47.12B | 45.76B | 44.59B | 46.05B | 42.47B | 48.19B |
| Cash, Cash Equivalents and Short-Term Investments | 5.27B | 4.47B | 5.38B | 7.92B | 4.35B | 14.27B |
| Total Debt | 15.03B | 14.19B | 15.29B | 21.83B | 17.57B | 21.52B |
| Total Liabilities | 33.48B | 32.39B | 32.41B | 39.70B | 36.80B | 38.85B |
| Stockholders Equity | 13.64B | 13.37B | 12.09B | 6.25B | 5.19B | 9.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.41B | 1.94B | 3.25B | -6.22B | -6.35B | -5.80B |
| Operating Cash Flow | 1.51B | 2.11B | 3.35B | -5.95B | -5.95B | -5.41B |
| Investing Cash Flow | -2.25B | -2.44B | -1.74B | 1.26B | 1.26B | 159.30M |
| Financing Cash Flow | -770.78M | -1.37B | -4.29B | -2.96B | -2.96B | 9.37B |
Iqiyi Technical Analysis
Positive
2.36
Price Trends
1.93
Positive
1.86
Positive
2.02
Positive
Market Momentum
0.14
Negative
68.65
Neutral
74.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Positive. The current price of 2.36 is above the 20-day moving average (MA) of 2.06, above the 50-day MA of 1.93, and above the 200-day MA of 2.02, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 68.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IQ.
Iqiyi Risk Analysis
Iqiyi disclosed 96 risk factors in its most recent earnings report. Iqiyi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We may not have the ability to raise the funds necessary to settle redemption of our existing notes, or to repurchase such notes upon a fundamental change or on certain specific dates, and our future debt may contain limitations on our ability to pay cash upon conversion or to repurchase the notes. Q4, 2022
2.
The sale or availability for sale of substantial amounts of our ADSs could adversely affect their market price. Q4, 2022
Iqiyi Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $521.00B | 52.25 | 43.55% | ― | 14.28% | 46.86% | |
77 Outperform | $14.08B | ― | -2.47% | ― | 17.32% | 87.79% | |
68 Neutral | $16.86B | ― | -0.11% | 1.35% | -1.75% | 99.73% | |
68 Neutral | $2.26B | 183.59 | 0.67% | ― | -10.86% | -94.68% | |
64 Neutral | $29.21B | 39.07 | 2.18% | ― | -3.79% | ― | |
60 Neutral | $43.56B | 4.52 | -12.81% | 4.07% | 1.87% | -43.08% | |
50 Neutral | ― | ― | -1.75% | 99.73% |
* Communication Services Sector Average
Performance Comparison
IQ
Iqiyi
2.36
0.12
5.36%
PSKY
Paramount Skydance
14.81
4.53
44.07%
NFLX
Netflix
1,223.50
531.02
76.68%
ROKU
Roku
96.18
27.74
40.53%
PARAA
Paramount Global
16.91
-5.09
-23.14%
WBD
Warner Bros
12.15
4.42
57.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.